If your already in a high tax bracket, then the commission will be taxed at that rate which may be more than the capital gains.

As in, is there a tax loophole here to avoid capital gains?

However, i know that there are many cities within California that prohibit or heavily tax Airbnb's.

Good choice :)Being able to start a journey of deferring that tax will compound for you as long as you keep the new properties or do a 1031 whenever you sell one. 

I would love to see the numbers: mortgage, insurance, taxes, rent.

What I mean by this is considering how much your down payment returns to your net worth (appreciation, loan paydown, tax benefits, AND rent avoidance).

It depends on Johnny's tax rate, and how much employment income he already has. 

.- Property receives one set of taxes- Both houses are approximately the same sq ft. (1300)- Two single-family homes, not attached (two different addresses)- Property size 0.45 Acres- Township won't allow subdivision unless each house sits on 0.5 acre lots- Will reside in one house upon purchase, and will rent out the second house- One house currently rented out for $1,400 a month with a one-year lease- Purchase price $260,000Looking for ideas or best ways to finance this type of property!

Like when I did my last one, the study was going to cost $1600 and the benefit of it was $28,000 in tax savings.

@Rajshekar Manaliker I’m here in south Florida and we’re still moving and shaking with a good amount of incoming residents from income tax paying states